EURUSD Analysis 22.03.2019

The single currency of the European Union region fluctuated in a narrow upward range during the Asian session to reflect a resumption of its low rebound since June 26, 2017, marking a 9-day rally in 12 sessions against the US dollar on the eve of economic developments and data Friday By the US economy, the world's largest economy.

At 04:41 am GMT, the EURUSD rose 0.03% to 1.1376, compared with the opening at 1.1373 after the pair reached a high of 1.1379 while the lowest at 1.1361.

The markets are looking for both the French economy and the economy of the region as a whole. The initial reading of the Markit Index for Industrial and Service Purchasing Managers for the current month, which may reflect the expansion of the service sector, the contraction of the industrial sector in France, contraction of the industrial sector and contraction of the service sector in Germany. Contraction of the industrial sector and shrinking service expansion in the economies of the region as a whole.

This comes in conjunction with the release of the seasonally adjusted current account index, which may reflect a widening surplus to € 17.3 billion from € 16.2 billion last December. Otherwise, we followed yesterday the European Trade Commission, Cecilia Malmstrom, As a security threat, adding that the global trading system and the reform of the World Trade Organization must be absent.

In another context, European Council President Donald Tusk also noted yesterday that the request of British Prime Minister Teresa May to postpone the exit of the United Kingdom from the European Union until the end of June, will be approved only if the British Parliament approved the exit agreement reached Between London and Brussels, explaining that the approval of the extension may take place if the ratification of the parliament, which was rejected twice by a large majority.

On the other hand, investors expect the US economy to release the preliminary reading of the PMI index for the United States for the month of March, amid expectations of the expansion of the industrial sector to 53.5 compared to 53.0 in February, and shrinking service sector to what 55.7 versus 53.0 in February.

To the release of housing market data with the release of the existing home sales index, which may reflect a rise of 3.2% to 5.10 million one against a decline of 1.2% at 4.94 million one in January, in conjunction with the final reading of the index of wholesale stocks, which may The slowdown shows growth at 0.2% versus 1.1% in the January preliminary reading and the previous December reading.

This comes hours after the Federal Open Market Committee's meeting during the March 19-20 meeting to keep interest rates between 2.25% and 2.50% and move forward in reducing bond buybacks until next September as the Commission cuts its growth forecast Its expectations for unemployment rates and the decline in its expectations of raising interest rates this year amid maintaining its expectations to be raised once during the next year 2020.

Technical Analysis

The EURUSD touched the awaited target at 1.1340 and found strong support there, where the 38.2% Fibonacci retracement of the upside wave is measured from 1.1174 to 1.1445 and therefore the pair is attempting to recover and regain the upside direction but needs to break through 1.1380 To confirm the continuation of the bullish trend during the coming period.

Therefore, we prefer to stop on the neutral temporarily until we get a clearer indication of the next direction, which we will get through breaking the resistance 1.1380 or break the support 1.1340, noting that the breach of this resistance will push the price to achieve positive targets start at 1.1440 and extends to 1.1550 after Breaching the previous level, while breaking support will extend the downside wave targeting 1.1280 and 1.1240 in the near term.

The trading range for today is expected among 1.1300 support and 1.1470 resistance

The expected general trend today: Depends on the levels mentioned in the report

The EURUSD touched the awaited target at 1.1340 and found strong support there, where the 38.2% Fibonacci retracement of the upside wave is measured from 1.1174 to 1.1445 and therefore the pair is attempting to recover and regain the upside direction but needs to break through 1.1380 To confirm the continuation of the bullish trend during the coming period.

Therefore, we prefer to stop on the neutral temporarily until we get a clearer indication of the next direction, which we will get through breaking the resistance 1.1380 or break the support 1.1340, noting that the breach of this resistance will push the price to achieve positive targets start at 1.1440 and extends to 1.1550 after Breaching the previous level, while breaking support will extend the downside wave targeting 1.1280 and 1.1240 in the near term.

The trading range for today is expected among 1.1300 support and 1.1470 resistance

The expected general trend today: Depends on the levels mentioned in the report